But State Supreme Court Judge Cynthia Kern determined 98 percent of the students were ineligible to pursue the case of fraud because they gave the school high marks in a written report card and said they were satisfied, Business Insider reports.

He added that the judge's decision "has delivered a devastating blow" to Schneiderman's "well publicized" fight."

But the AG's office has vowed to continue its case that claims Trump University students, who were paying up to $30,000 in tuition, were swindled by false promises, including a meet and greet with Trump. Instead, they reportedly only got a picture with a cardboard cutout.

Trump's declaration of victory may be short-lived. The judge ruled that fraud claims are subject to a six-year statute of limitations and that "petitioner's claims for fraud … are timely and remain as claims in this proceeding."

"Today’s decision affirms the propriety of our fraud case against Donald Trump and his sham university," said AG spokesperson Damien LaVera in an email to Business Insider.

"The judge determined that our office will have the opportunity to hold Mr. Trump accountable for all of the actions outlined in our complaint.

"Mr. Trump used his celebrity status and personally appeared in commercials making false promises to convince people to spend tens of thousands of dollars they couldn't afford for lessons they never got," LaVera said. "Attorney General Schneiderman looks forward to making sure he is held accountable."

In addition, the AG says the Trump school operated without an educational license while misleading consumers into paying for courses promising to teach Trump's real estate investment techniques.